Galt Global Review

QFS 360

 
August 1, 2006

Cell Phones Dial Into Kids Market


by Adrian Brijbassi


Giving the order to "come home now" has never been so easy for a parent to
deliver. The cell-phone industry has targeted the preteen market with so many
choices and products you might think the craze was inspired by a George Lucas
movie.

One parent who isn’t ready to give in (just yet, at least) is Carla
Heinrich-Trautwein, a framer and photographer from Austin, Texas, whose
11-year-old son desires a cell phone of his own. For now, his mother insists
he can’t have one.

"I think 13 is the earliest I would consider it, whether I get talked into it
before that is another story," she says, adding that a preteen is more likely
to lose the device while a boy or girl who has already started middle school
should know there is an economic consequence to owning a phone. "An
older child will understand it costs money to make a call."

That position means her son, Carl, may be out of luck for now, though
Heinrich-Trautwein anticipates no end to his requests. She says the
most common answer her fifth-grade graduate gives when asked why he needs a cell phone is that his friends have one. "You’ve got to keep up with the Joneses," she points out.

Peer pressure figures as the conduit that allows this upcoming generation
to stay connected. No group is more prone to wanting to fit in than kids. And, according to manufacturers, one of the items currently at the top of children’s wish lists is a cell phone. The evidence is there to support the claim. Not only are the number of companies entering the market broadening, but Firefly Mobile Inc. has seen significant results since it introduced cell phones to the children’s market in 2004. The company has signed up more than 100,000 children’s accounts, according to published reports.

While the demand for the product is there, so is the manufacturers’ need to
supply it. The Yankee Group, a market research company located in Boston, says
four of five adult Americans age 18-65 own a cell phone. While there is an
obvious resale market within that demographic, such penetration minimizes the
room for growth. Hence, the focus on children, particularly preteens.

To market to kids, cell-phone makers have teamed with the super brands most
familiar with the monkeybar set: Disney, Hasbro and Mattel, among others. To
market to parents, the toy and cell-phone industries have tapped into an old
sales standby: playing the kid card. Hence the push to deliver mobile phones into hands barely large
enough to hold them.

They’ve sold moms and dads on the safety and peace-of-mind benefits of mobile
phones, as well as made the devices economically prudent. Many of the phones
designed for children under 13 cost less than $100 and with minutes
that can be programmed, allowing parents to control how much time a child spends on his or her cell phone.

Some phones, including the model by Firefly that was the first entrant to the market, feature limited controls, such as only three dialing options: Mom, Dad and 911.

Some parents have bought into an omnipresent umbilical cord, others haven’t.

"What 6-year-old is away from his parents for so long that he needs to have
one?" asks Heinrich-Trautwein.

Critics question the need for school kids to have cell phones. The
World Health Organization, for instance, is concerned about the effect the radiation emitted by the devices may have on the thinner brain tissue of children.

Yet cell-phone retailers believe the convenience they offer families will lead to more sales.Overnight camp trips, birthday parties, waits at the bus stop and after sports
practices are examples of situations where the benefits of a children’s cell
phone can be very real. However, the limited options on the products hinder
their cool factor, critics assert.

"This isn’t a cell phone," Paul Saffo of the Institute for the Future told
USA Today when Firefly?s product was introduced. "This is a dog leash.”